Obama on the Tanker Deal

An Iraq war veteran at the town hall asked [Senator Obama's] opinion of a recent decision by the Pentagon to award a a $35 billion Air Force tanker contract to a consortium led by Airbus, located in Europe, over a bid led by U.S.-based Boeing.

Obama said he had concerns about the deal but an investigation was warranted to find out more.

"I don't mind the Pentagon procuring from other countries but when you've got such an enormous contract for such a vital piece of our U.S. military arsenal, it strikes me that we should have identified a U.S. company that could do it," he said, though he added that he might conclude the decision was justified if it turns out Airbus' bid was 10-15 percent better than Boeing's.

So as a general matter, he thinks having the Pentagon buy from foreign sources is OK. That's a fairly pro-trade sentiment. In this specific instance, though, he thinks the tankers are crucial for national security, so maybe it's not OK, although perhaps it would be if the foreign product was significantly better. That's less pro-trade, but still not completely anti-trade.

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An Iraq war veteran at the town hall asked [Senator Obama's] opinion of a recent decision by the Pentagon to award a a $35 billion Air Force tanker contract to a consortium led by Airbus, located in Europe, over a bid led by U.S.-based Boeing.

Obama said he had concerns about the deal but an investigation was warranted to find out more.

"I don't mind the Pentagon procuring from other countries but when you've got such an enormous contract for such a vital piece of our U.S. military arsenal, it strikes me that we should have identified a U.S. company that could do it," he said, though he added that he might conclude the decision was justified if it turns out Airbus' bid was 10-15 percent better than Boeing's.

So as a general matter, he thinks having the Pentagon buy from foreign sources is OK. That's a fairly pro-trade sentiment. In this specific instance, though, he thinks the tankers are crucial for national security, so maybe it's not OK, although perhaps it would be if the foreign product was significantly better. That's less pro-trade, but still not completely anti-trade.